I am creating this new topic as a follow up to the discussions in this post where a specific GIP by @ariel may have gone unnoticed by the broader community as it was a response in the thread. To summarize, Ariel’s proposal introduces solutions to three concerns that frequently come up in various community discussions and posts:
Simplified cut settings interpretation (Delegator benefit)
Delegators no longer need to translate an indexers cut % into an effective cut % and then evaluate different levels. Whatever cut % an indexer sets (for bot Indexer Rewards and Query Fees) becomes in fact the critical number to evaluate. That means, as an example, one Indexer’s 10% setting will in fact mean that the impact for delegators is twice as high as another Indexer’s 5% setting.
Simplified cut settings management (Indexer benefit)
Indexers no longer need to constantly monitor their delegation-to-indexer stake ratio and make cut adjustments to maintain their desired target return %. The new mechanism auto-adjusts for delegation changes and reduces the times Indexers are required to change their settings.
Eliminate sandwich attacks (Delegator benefits)
Cut % are locked in at the time an allocation opens (vs. closed currently). That eliminates the possibility for a sandwich attack to occur where cut % are changed unexpectedly around the time rewards are allocated and removes uncertainty for Delegators about their expected rewards yield.
Here you find the details of the proposal which is called Stable Delegation Rewards Yield
The GIP has been created over two months ago and has not advanced due to lack of community feedback that demonstrates strong support implementing this proposal. Feel free to provide your feedback in this post as we will use it to gauge level of community response and whether to proceed further with it. Thank you!